There are not many ouright sales/ purchases in the recent past. HUL tried selling its Backbay Reclamation propoerty, but couldnt find a buyer.

The lease rents in Nariman Point declined 50% (highest for any area in Mumbai) from around Rs.500 per sqft in its peak in 2008 to around Rs.250 per sqft)

Only the brokerages will need to be closer to BSE (even they are moving now, Motilal Oswal moved). Other financial institutions, which have wide array of services have been moving out due to lack of quality office space and to reduce travel for employees.

This is the irony in India. The most expensive comemrcial space in the country sells at Rs.31000 per sqft, while any random residential property in SoBo or even Bandra West / Juhu costs more than Rs.40000 per sq.ft.

This is the irony in India. The most expensive comemrcial space in the country sells at Rs.31000 per sqft, while any random residential property in SoBo or even Bandra West / Juhu costs more than Rs.40000 per sq.ft.

Point being ?

Kindly elaborate. Some of us are genuinely interested in your thoughts, specially your analytical thoughts, no really.

Kindly elaborate. Some of us are genuinely interested in your thoughts, specially your analytical thoughts, no really.

The point being mid tier residential developments are more expensive than the commercial developments in most of the areas in India , especially Mumbai. This is quite contrary to what you see elsewhere in the world (luxury developments amy be priced higher in other parts of the world, not a mid tier development).

IMO, This may be due to high information assymetry between the buyers and sellers. The sellers due to financial muscle and politcial connections create artificial demand to take away obscene profits, which may not be possible in commercial developments, where the buyers are more informed.

"Leasing and buying activity continued to accelerate during the last two quarters. The rent correction appears to be complete, with most existing buildings and new projects recording flat rates or slight increases over the previous quarter. The overall stability of the market is a sign that it has bottomed out," the report stated.

The additional 2.5 million sq ft is expected with the completion of buildings such as The Capital, FIFC and TCG Finance Centres. Over the last few years, BKC's 'G' Block has gained prominence as the key location within the unique micro-market.

BKC was created by MMRDA as an alternate CBD to Mumbai, with the purpose of halting the further growth of offices and commercial activities in south Mumbai. "Despite the economic uncertainty, which continues to haunt the BFSI sector in Europe and the United States, BKC's office market continues to grow.

Today, the indecision among tenants which defined 2010 and 2011 has eased. Over the last 24 months, the market needle has begun to point towards a landlord-favouring market," said Ramesh Nair, managing director (west) of JLLI.

"The change in sentiment has come earlier than was originally expected at the beginning of last year and can be attributed to the large deals by Citibank, Deutsche Bank and First Rand Bank and also the lack of new quality supply in the market in 2013 and 2014," he added.

Major institutions that have independent buildings in BKC include IDBI, SBI, SEBI, BOI, Dena Bank, SIDBI, PNB, ING, NSE, NABARD, ILFS, ICICI, UTI, Citibank, Canara Bank, Bank of Baroda and Oriental Bank of Commerce. Other prominent institutions include the American consulate, Dhirubhai Ambani International School and The American School of Bombay. Currently, BKC also has two luxury hotels-The Trident and Sofitel.

The JLLI report stated that with the diamond bourse (2 million sq ft) soon to be operational in 2 million sq ft of premises, the number of people coming to BKC would increase dramatically. "How the MMRDA will address the management of this sudden onslaught of traffic remains to be seen. Other areas of concerns include the continued lack of food and beverage outlets and sufficient public transportation. The Metro project announced in 2008 would be a game-changer, however, the project has been drastically delayed. The monorail, now scrapped, could have been a key infrastructure boost for BKC," the report added.

UPCOMING SUPPLY

Key projects in Bandra Kurla Complex over the next 2-4 years include:

The Jet Godrej office project

The Reliance headquarters-cum-convention centre

Wadhwa's C66

Kotak's headquarters

Enam's new building (to be completed in 2013.)

Luxury hotels such as The Bellagio and MGM Grand will also be completed over the next few years